Question

On what basis is the amount of the REIX premium determined?

A) By analysis of the current cost of money on the world market
B) By annual claims paid in the commercial insurance market
C) By annual review of defence costs and indemnities paid
D) By annual review indemnities paid and potential claims in progress

Answer 1

The amount of the REIX premium is determined based on factors such as the current cost of money, annual review of defense costs and indemnities paid, and potential claims in progress.

Step-by-step explanation:

The amount of the REIX premium is determined on the basis of various factors, including the analysis of the current cost of money on the world market, annual review of defense costs and indemnities paid, and potential claims in progress. These factors contribute to the overall calculation of the premium amount, ensuring that the insurance company can cover the average person's claims, the costs of running the company, and leave room for profits.